Employee Retirement Income Security Act of 1974 (ERISA)

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for pension plans in private industry. ERISA does not require any employer to establish a pension plan. It only requires that those who establish plans must meet certain minimum standards. The law generally does not specify how much money a participant must be paid as a benefit. ERISA requires plans to regularly provide participants with information about the plan including information about plan features and funding; sets minimum standards for participation, vesting, benefit accrual and funding; requires accountability of plan fiduciaries; and gives participants the right to sue for benefits and breaches of fiduciary duty. http://www.dol.gov/compliance/laws/comp-erisa.htm

ERISA is not just about pension plans, it also includes some very specific and vague requirements of those employers offering group benefit plans as well (medical, dental, vision, HRA, FSA, wellness, telemed, EAP and many more benefits). It is critical to know what the requirements are for ERISA so that the IRS (who enforces ERISA law) does not impose heavy fines and penalties...which it can.

Commonly, ERISA can be complied with some simple implementation with regard to FORM 5500 preparation, using a WRAP document as well as using other resources. Should you want to consider having Polestar Benefits provide a compliance check up to see areas of concern and give peace of mind as well, we are here to help. Get a quote.